German state wants to set up European blockchain institute

German state wants to set up European blockchain institute

The government of the German state of North Rhine-Westphalia (NRW) has announced its plans to establish a European blockchain institute. In a statement, NRW Economics Minister Andreas Pinkwart confirmed the European Blockchain Institute will be founded later this year in the city of Dortmund, inside the Fraunhofer Institute for Material Flow and Logistics (IML).

One major aim towards this new establishment is so that NRW can be able to help Europe “catch up” in blockchain achievements as it is way behind compared to other countries like the United States.

The economics minister also addressed the concerns raised by critics over the amount of energy consumed by Bitcoin mining, saying, “This technology can be safe, decentralized, affordable, and when used properly, not too energy-intensive.”

The blockchain institute is being established to further research blockchain technology. Also the new technology should make it possible to handle internet transactions faster and securely. The technology will also be able to record business to business transactions including contract, title deeds, licenses, monetary transactions or subscriptions, in “perpetual eternity.”

Germany’s blockchain ecosystem is quickly gaining mass adoption. In addition to the long list of blockchain development companies that have set up shop in Germany, the country’s justice and finance ministries recently proposed the launch of a state-run register to boost the use of blockchain technology. Germany’s Federal Ministry of Finance has also published a paper discussing the treatment and regulation of blockchain-based securities.

The document stated that regulation in the sphere could contribute to the development of the technology behind cryptocurrencies, along with improving Germany’s position in financial markets. The guidelines also proposed easing existing requirements, which assume that financial instruments must have tangible counterparts that can be purchased by investors.

More recently, the news went viral that Germany is looking to introduce new blockchain regulations in the near future. Having realised the incredible potential of the blockchain technology, the country is interested in issuing blockchain bonds to revolutionize the paper bond sector and pave the way for users to purchase digital tokens that could provide them with annual interest payments.

New to blockchain? Check out CoinGeek’s Blockchain for Beginners section, the ultimate resource guide to learn more about blockchain technology.